Sri Mulyani, Minister of Finance of the Republic of Indonesia, stated that Bali Province must immediately diversify its market in sectors other than tourism. This should be done by the local government of the Province of Bali to improve the economy and not depend on only one type of economic sector.
Another economic sector that can be used as a prospect is the agricultural sector. This can be a great opportunity because the trend of global market demand for organic products is getting higher.
She explained, “Bali must diversify its economy in other sectors, such as agriculture. Because Bali has a subak system and supporting land, the use of this organic sector can be a strength during a pandemic, it can even bounce back even more.”
Sri Mulyani warned Bali to learn from previous occasions. When the pandemic hit, Bali, which only relied on tourism, struggled to survive. This must be overcome by diversifying the market.
Moreover, the government will continue to assist by sending state budget assistance to MSMEs. The assistance is in the form of interest subsidies, ultra micro-financing (UMi), and loan guarantees so that banks dare to provide loans to MSMEs even during a pandemic.
“The role of MSMEs, including ultra-micro businesses, reached 64.2 million with a contribution of 61.07 percent to Indonesia’s gross domestic product (GDP). In addition, MSMEs were able to absorb 97 percent of the total workforce and around 60% of the total investment in Indonesia. ,” she said.
Technical assistance for UMKM
In addition, the government also provides technical assistance. The Directorate General of Taxes and the Directorate General of Customs and Excise have assisted MSMEs through technical units so that they can penetrate the wider export market.
The development of micro-enterprises in Indonesia is currently supported by the Central Government Investment Agency (PIP), which is the Public Service Agency (BLU) of the Ministry of Finance.
The task of this PIP is to help MSMEs to develop and increase. This institution is also proof that the government fully supports micro-enterprises to reach the realm of the global market
PIP President Director Ririn Kadariyah said the contribution of MSMEs, including ultra-micro businesses, reached 61.07 percent of gross domestic product (GDP).
MSMEs are also able to absorb 97 percent of the total workforce and around 60 percent of the total investment in Indonesia.
By the end of 2021, PIP had disbursed Rp 18.07 trillion in ultra microloans (UMi) to more than 5.39 million debtors in 34 provinces throughout Indonesia.
In 2022, PIP targets the distribution of UMi financing to reach 2 million ultra micro business actors.
Specifically for Bali, the distribution of UMi is done through PT Permodalan Nasional Madani (PNM), PT Pegadaian, Krama Bali Cooperative, and UGT Nusantara Cooperative. The capital is claimed to have reached 15,899 business actors with a value of Rp 65.59 billion.